Not upheld: Goods and services under S75 complaint against MotoNovo Finance Limited
Financial Ombudsman decision DRN-6471560 of 2026-07-03T00:00:00+00:00. Goods and services under S75 complaint against MotoNovo Finance Limited. Outcome: Not upheld.
Decision detail
| Reference | DRN-6471560 |
|---|---|
| Decision date | 2026-07-03T00:00:00+00:00 |
| Firm | MotoNovo Finance Limited |
| Product | Motor finance (PCP / HP) |
| Claim type | Goods and services under S75 |
| Outcome | Not upheld |
| Remedy | MotoNovo must: (1) Pay £760.65 to reflect loss of use if not already paid; (2) Reimburse diagnostic report costs with proof of payment and invoice; (3) Pay 8% simple interest on refunded amounts from date of payment until settlement; (4) Remove adverse credit file information from November 2025 relating to the agreement if applicable. |
Summary
Mr I purchased a used car via hire purchase with MotoNovo in July 2025 and reported faults within a month, requesting rejection. An independent inspection in November 2025 confirmed the car had severely worn brake discs and electrical faults present at supply. MotoNovo agreed to allow rejection and offered £760.65 refund plus £375 compensation, but Mr I sought additional reimbursement for hire car costs, insurance, road tax, and overdraft charges incurred while pursuing his complaint. The ombudsman upheld MotoNovo's settlement as fair and reasonable, rejecting Mr I's additional claims because he continued to use the car throughout the complaint period, covering significant mileage, and therefore failed to mitigate his losses.
The Ombudsman's reasoning
The ombudsman applied the Consumer Rights Act 2015 which permits deductions for use from refunds. The ombudsman determined that MotoNovo's offer of £760.65 refund (more than the four monthly payments Mr I made) plus £375 compensation was fair and reasonable. The ombudsman rejected claims for hire car costs, insurance, road tax, and overdraft charges because Mr I continued to use the car throughout the complaint period, covering significant mileage, and therefore did not mitigate his losses. The ombudsman found Mr I's actions inconsistent with someone seeking to reject the car and end the agreement.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| MotoNovo Finance Limited, all decisions | 572 | 44% |
| Goods and services under S75, all decisions | 19,913 | 36% |
| Motor finance (PCP / HP), all decisions | 19,529 | 38% |
Source
Read the original decision on the Financial Ombudsman Service website